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Almost $2B from $30B Bond Facility released to GuySuCo for operational expenses

Aug 20, 2018 News

 

The National Industrial and Commercial Investments Limited/Special Purpose Unit (NICIL/SPU) announced yesterday that almost $2 Billion has been disbursed to the Guyana Sugar Corporation (GuySuCo) for operational expenses of its three estates (Albion Estate, Blairmont Estate and Uitvlugt Estate).
According to NICIL, this is in keeping with the plans of the Coalition Government to make the industry viable and to safeguard the future of the 11,000 plus workers.
NICIL in its statement to the media said, “As can be recalled, and reported, earlier this year NICIL was mandated to seek financing for the smaller-sized corporation targeting retooling, diversification and improved agriculture. This was being pursued even as work was being done to privatize and divest the four estates- Skeldon, Rose Hall, Enmore and Wales.”
Through local financing, arranged by Republic Bank Limited, NICIL said that it managed to successfully negotiate a Bond Facility for $30B, with significant input from the Ministry of Finance.
It said that a full $30B has been secured but it requested $17B in the first tranche.
NICIL said, “We will receive the remainder on request. It was structured in this manner for it not to incur unnecessary costs. It must be noted that half of the bond amount would be provided for in local currency while the remainder would be disbursed in USD.”
“This bond facility is the largest ever for the country and is clear evidence of the capacity of our local state agency and financial institutions, with the negotiations very complex in nature.”
Under the arrangements, GuySuCo must submit its applications that are vetted to make sure it meets the approved criteria of the bondholders with two disbursements made so far- one for $880M and another for just over $1.1B.
NICIL said that the monies from the bond facility will be used to purchase equipment for plantation white and co-generation plants, operational expenses, including the purchase of nine tractors.
NICIL made it clear that the monies obtained from the bond facility were not obtained to facilitate the payment of debt as was ventilated time and again by the Minister of Finance and stakeholders.
The entity made it known that GuySuCo is yet to complete its procurement process for the mentioned capital items. It concluded therefore, that GuySuCo is not in a position to draw down on additional secured funds.

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